**We’re Not the IRS:** Tactical Tax Group is an independent resource here to help taxpayers.

We are not affiliated with the IRS or any government agency.

**We’re Not the IRS:** Tactical Tax Group is an independent resource here to help taxpayers.

We are not affiliated with the IRS or any government agency.

The Tax Gap: Bridging the Divide

IRS Statement on the Tax Gap Update

The tax gap is a key indicator of national compliance with Tactical Tax

laws, showing the difference between taxes owed and taxes actually paid. The IRS periodically estimates this gap to assess taxpayer behavior, and the most recent study covers tax years 2008-2010.

This update reveals that there has been no significant change in the overall size of the tax gap or the compliance rate compared to earlier reports, including the study for the 2006 tax year. The average annual tax gap for the period 2008-2010 is estimated at $458 billion, compared to $450 billion in 2006.

The net tax gap, after considering enforcement activities and late payments, is $406 billion per year, with the voluntary compliance rate dropping slightly to 81.7% from 83.1% in previous estimates. However, the net compliance rate remains at 83.7%, which takes enforcement into account.

Factors Behind the Change

The slight increase in the estimated tax gap and the small decline in the voluntary compliance rate are attributed to improvements in the tax gap estimation methodology, rather than significant shifts in taxpayer behavior. These changes also reflect the effects of the 2007-2009 recession, which impacted tax revenues and led to changes in the mix of income sources, some of which are harder to track and tax.

The Importance of Voluntary Compliance

A high level of voluntary tax compliance is crucial for maintaining fairness in the tax system. When taxpayers fail to pay their fair share, the burden shifts to those who comply, eroding trust in the system.

The IRS remains committed to improving voluntary compliance by:

  • Addressing international tax compliance issues

  • Educating tax preparers and taxpayers

  • Collaborating with businesses to ensure proper handling of employment taxes

Moving Forward

Despite the slight adjustments in the numbers, the tax gap remains a major challenge, with serious implications for national revenue and fairness in the tax system. The IRS continues its efforts to reduce the gap and promote compliance through a combination of enforcement, education, and improved reporting practices.

The Tax Gap: Bridging the Divide

IRS Statement on the Tax Gap Update

The tax gap is a key indicator of national compliance with Tactical Tax

laws, showing the difference between taxes owed and taxes actually paid. The IRS periodically estimates this gap to assess taxpayer behavior, and the most recent study covers tax years 2008-2010.

This update reveals that there has been no significant change in the overall size of the tax gap or the compliance rate compared to earlier reports, including the study for the 2006 tax year. The average annual tax gap for the period 2008-2010 is estimated at $458 billion, compared to $450 billion in 2006.

The net tax gap, after considering enforcement activities and late payments, is $406 billion per year, with the voluntary compliance rate dropping slightly to 81.7% from 83.1% in previous estimates. However, the net compliance rate remains at 83.7%, which takes enforcement into account.

Factors Behind the Change

The slight increase in the estimated tax gap and the small decline in the voluntary compliance rate are attributed to improvements in the tax gap estimation methodology, rather than significant shifts in taxpayer behavior. These changes also reflect the effects of the 2007-2009 recession, which impacted tax revenues and led to changes in the mix of income sources, some of which are harder to track and tax.

The Importance of Voluntary Compliance

A high level of voluntary tax compliance is crucial for maintaining fairness in the tax system. When taxpayers fail to pay their fair share, the burden shifts to those who comply, eroding trust in the system.

The IRS remains committed to improving voluntary compliance by:

  • Addressing international tax compliance issues

  • Educating tax preparers and taxpayers

  • Collaborating with businesses to ensure proper handling of employment taxes

Moving Forward

Despite the slight adjustments in the numbers, the tax gap remains a major challenge, with serious implications for national revenue and fairness in the tax system. The IRS continues its efforts to reduce the gap and promote compliance through a combination of enforcement, education, and improved reporting practices.

We’re here to help

Whether you are affected by a personal tax debt or a business liability, Tactival Tax Group is here to provide honest help for taxpayers seeking relief through the IRS Initiative.

You’re our first priority.

Every time.

At the Tactical Tax Group, we believe everyone deserves to be able to make tax decisions with confidence. We have dedicated, hard-working tax professionals and volunteers who ensure that the information on this site is current and as accurate as possible. While we always recommend you consult a tax professional for your specific situation, we’re proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward — and free.

© 2025 Tactical Tax Group. All Rights Reserved.

*tactaxgroup.com is a educational resource for taxpayers and not affiliated with any government agency.

We’re here to help

Whether you are affected by a personal tax debt or a business liability, Tactical Tax Group is here to provide honest help for taxpayers seeking relief through the IRS Initiative.

You’re our first priority.

Every time.

At the Tactical Tax Group, we believe everyone deserves to be able to make tax decisions with confidence. We have dedicated, hard-working tax professionals and volunteers who ensure that the information on this site is current and as accurate as possible. While we always recommend you consult a tax professional for your specific situation, we’re proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward — and free.

© 2025 Tactical Tax Group. All Rights Reserved.

*tactaxgroup.com is a educational resource for taxpayers and not affiliated with any government agency.